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Lastest S$ Deposit updates - Part 3

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Old 16-07-2019, 11:41 AM   #3496
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One has to consider the fx lost/gain other then just interest rate.
Take a look at the 5, 10, 15 years SGDIDR historical chart will give you a feel on the exchange risk you need to prepare to stomach for the higher interest.
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Old 16-07-2019, 11:59 AM   #3497
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My math in school is actually very poor but yours is worse than mine. When it comes to money I on the ball.

The amount in savings account do not enjoy 2.22% p.a. but at 0.1875% p.a.

You are a very good target audience for such gimmicks promotion by banks haha.

There is a reason why I always say don't fall for gimmicks by banks.

Let's use S$50,000 deposit as a comparison.

Maybank Savings Account
0.1875% p.a.


Maybank 12 Month Fixed Deposit 2.22% with gimmicks.
https://info.maybank2u.com.sg/promot...it-bundle.aspx

S$50,000 x 2.22% = S$1110.00
S$5000 x 0.1875% - S$9.375 <- Need to lock in S$1000 at savings account rate for every S$10,000 at 2.22%.
TOTAL CAPITAL INVESTED: S$55,000
TOTAL INTEREST: S$1119.375


SBI 12 Month Fixed Deposit 2.05% with no gimmicks.
https://www.sbising.com/TD_promotions

S$55,000 x 2.05% = S$1127.50
TOTAL CAPITAL INVESTED: S$55,000
TOTAL INTEREST: S$1127.50


Although the difference is only marginable but you will be surpise that many will fall for such gimmicks such as Mr.ckong8!

The only pros about Maybank is that the interest is upfront. Don't say I only highlight cons but never highlight pros hahaha.

Bank is smart but I not stupid also.
Thanks for the computation.

So if you factor in the potential interest earned for the upfront $1100 interest on the $55,000 cash outlay, how does the comparison between Maybank and SBI offers look like?
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Old 16-07-2019, 12:40 PM   #3498
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What the original post regarding the MayBank case is he never mention for MayBank fix deposit, your fix deposit interest is credited to your saving account out front and you can start to use it. For the same example of 50K case, interest is $1110! This is the out front interest you can use immediately vs 1 year later.

In the end, you will find MayBank is still better.

His calculation actually missed this!

Last edited by cscs3; 16-07-2019 at 12:56 PM..
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Old 16-07-2019, 01:08 PM   #3499
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Take a look at the 5, 10, 15 years SGDIDR historical chart will give you a feel on the exchange risk you need to prepare to stomach for the higher interest.
Iny experience for M$ case, you never win especially when you need to first convert S$ to M$, and then M$ back to S$ again.
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Old 16-07-2019, 01:08 PM   #3500
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What the original post regarding the MayBank case is he never mention for MayBank fix deposit, your fix deposit interest is credited to your saving account out front and you can start to use it. For the same example of 50K case, interest is $1110! This is the out front interest you can use immediately vs 1 year later.

In the end, you will find MayBank is still better.

His calculation actually missed this!
Based on Mr. Canberra calculations, the difference between Maybank and SBI for $55k FD is only $8.125. If we factor in the $1110 upfront interest payment by Maybank, to achieve $8.125, we need the $1110 just earn 0.73% p.a. interest which is achievable. Furthermore, Maybank has a much much wider network in Singapore. It is also a full licence bank in Singapore i.e. perceived to be lower risk.Not to mention that Maybank minimum amount is lower than SBI ($22k vs $50k) as picked up by Izydata.

In view of above and taking things in totality, I don't agree that the SBI's FD offer is better than Maybank and Mr ckong8 fell for such gimmicks as mentioned on his post.
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Old 16-07-2019, 01:12 PM   #3501
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Iny experience for M$ case, you never win especially when you need to first convert S$ to M$, and then M$ back to S$ again.
Spot on! History is a good teacher. Money market is super efficient. There is no free lunch.
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Old 16-07-2019, 02:49 PM   #3502
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What the original post regarding the MayBank case is he never mention for MayBank fix deposit, your fix deposit interest is credited to your saving account out front and you can start to use it. For the same example of 50K case, interest is $1110! This is the out front interest you can use immediately vs 1 year later.

In the end, you will find MayBank is still better.

His calculation actually missed this!
Based on Mr. Canberra calculations, the difference between Maybank and SBI for $55k FD is only $8.125. If we factor in the $1110 upfront interest payment by Maybank, to achieve $8.125, we need the $1110 just earn 0.73% p.a. interest which is achievable. Furthermore, Maybank has a much much wider network in Singapore. It is also a full licence bank in Singapore i.e. perceived to be lower risk.Not to mention that Maybank minimum amount is lower than SBI ($22k vs $50k) as picked up by Izydata.

In view of above and taking things in totality, I don't agree that the SBI's FD offer is better than Maybank and Mr ckong8 fell for such gimmicks as mentioned on his post.
If you guys want to use interest gained from the Maybank upfront interest then of course you all win lah!

Maybank Savings Account
S$1119.375 x 0.1875% = S$2.10

CIMB FastSaver Account
S$1119.375 x 1.0% = S$11.19
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Last edited by Mr.Canberra; 16-07-2019 at 02:53 PM..
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Old 16-07-2019, 03:07 PM   #3503
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If you guys want to use interest gained from the Maybank upfront interest then of course you all win lah!

Maybank Savings Account
S$1119.375 x 0.1875% = S$2.10

CIMB FastSaver Account
S$1119.375 x 1.0% = S$11.19
It is not about who wins in the comparison of Maybank and SBI FD offers. It is about presenting the complete analysis so that people can make informed decision. Absolute interest rate aside, my point is also about other factors like more branches, wider ATM network, full license bank status, etc...to consider.
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Old 16-07-2019, 03:17 PM   #3504
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It is not about who wins in the comparison of Maybank and SBI FD offers. It is about presenting the complete analysis so that people can make informed decision. Absolute interest rate aside, my point is also about other factors like more branches, wider ATM network, full license bank status, etc...to consider.
Just to add that for me, even for the few $ more in interest per year (which is not the case now) is not worth my time to go out of my way to open a FD with SBI and subject myself to higher intrinsic risk.
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Old 16-07-2019, 06:22 PM   #3505
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Based on Mr. Canberra calculations, the difference between Maybank and SBI for $55k FD is only $8.125. If we factor in the $1110 upfront interest payment by Maybank, to achieve $8.125, we need the $1110 just earn 0.73% p.a. interest which is achievable. Furthermore, Maybank has a much much wider network in Singapore. It is also a full licence bank in Singapore i.e. perceived to be lower risk.Not to mention that Maybank minimum amount is lower than SBI ($22k vs $50k) as picked up by Izydata.

In view of above and taking things in totality, I don't agree that the SBI's FD offer is better than Maybank and Mr ckong8 fell for such gimmicks as mentioned on his post.
Yes, thats what I think too. More branches, ATM, internet banking etc is already a win. The different probably not enough for the round trip you need to travel to the branches.

Last edited by cscs3; 16-07-2019 at 06:25 PM..
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Old 16-07-2019, 06:34 PM   #3506
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Spot on! History is a good teacher. Money market is super efficient. There is no free lunch.
Correct, whenever FX is in between. Nothing win our strong S$. Look at what it use to be S$1 to M$1 and £1 to S$5+ day vs what you get today!

Also do remember Everytime you convert in between, some middle man will make extra from you. So do factor these into considerations.
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Old 17-07-2019, 04:16 PM   #3507
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Just deposited into SBI. 10mins flat and walked out. Yes, no time for Ness kopi.
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Old 17-07-2019, 05:28 PM   #3508
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SBI

Just deposited into SBI. 10mins flat and walked out. Yes, no time for Ness kopi.
Seems like the crowd has worn off. Probably mid month blues.

Today I went down SBI to lim Nescafe kopi again. Within 20min settle.
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Old 18-07-2019, 03:58 PM   #3509
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The interest rate is coming down, this can be seem in Singapore Saving Bond interest rate, many bank also adjusted the FD rate down. It is good to know that there are banks still offer 2% or above for 12 mth.
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Old 18-07-2019, 05:56 PM   #3510
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The interest rate is coming down, this can be seem in Singapore Saving Bond interest rate, many bank also adjusted the FD rate down. It is good to know that there are banks still offer 2% or above for 12 mth.
Pressure for central banks to cut rates has increased significantly over the past 3 months. No exception for SGD interest rate too.
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